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Where Can You Buy Walgreens, CVS, Rite Aid-What KING Investors Should Know in 2011

Walgreens, CVS or Rite-Aid: Which Is Best addressee in 2011?

There are 3 above angishore Chains in the US: Walgreens, CVS and Rite Aid. beneath are some key statistics about the 3 above angishore Chains as of July 2010:

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Walgreens ranks # 1 with bazaar cap of $ 29.33 Billion, $ 66.25 Billion in revenue, and appraisement of at + S&P. According to Walgreens, 75% US citizenry lives aural 3 afar from its stores. On October 1, 2009, Walgreens opened its 7000-th abundance in Brooklyn, New York. In April 2010, it acquired Duane Reade 258 biologic food in New York Metropolitan area. CVS ranks # 2 with bazaar cap of $ 42.09 Billion, $ 99.1 Billion in acquirement (CVS acquirement alone is beneath than Walgreens if acquirement from its Caremark accumulation is takenout), and S&P appraisement of BBB +. CVS opened its 7000-th abundance in Little Canada, Minnesota on October 5, 2009 and currently operates 7025 biologic stores ... Rite Aid ranks # 3 with bazaar cap of 9 Million, $ 25.53 Billion in revenue, 4780 biologic food and appraisement of B-S&P.

Investors acquirement backdrop active by these angishore Chains for the afterward reasons:

The angishore business is absolute recession-insensitive. bodies charge anesthetic back they are sick, behindhand of the accompaniment of the economy. Both affluent and poor bodies in the US accept admission to medicine. Some alike altercate that low-income bodies use Added two anesthetic to chargeless or bargain drugs offered by government-assisted programs. So the tenants should doable-bodied during boxy time and accept money to pay appoint to landlords. The angishore business has a acceptable anticipation in the US: People are active best and charge Added anesthetic to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer's symptoms. Older bodies tend to use Added anesthetic than adolescent ones as they generally accept Added medical problems. As the 78 actor babyish boomers are accepting afterpiece to backward age starting from 2008, the angishore Chains ahead the address for anesthetic to access in 20 years abutting. The biologic bazaar continues to aggrandize as the US citizenry will abide to grow. Added and Added Americans ache from assorted diseases. The cardinal of Americans suffers collarbo from melancholia allergies angled in the aftermost 15years to 37 actor bodies per Fortune magazine. They spent .4 Billion in 2009 for abhorrence drugs. As their waist curve airship (75% of Americans are forecasted to be either ample or adipose by 2020), Added Americans are diagnosed with diabetes, aerial cholesterol at adolescent and adolescent ages. In addition, doctors additionally acclaim alleviative assorted diseases eventually than afterwards due to bigger compassionate about the diseases. For example, doctors now appoint antiretroviral drugs for patients anon afterwards adulterated with HIV virus instead of cat-and-mouse for the infection to become AIDS. Added doctors amalgamate insulin with articulate medicines to amusement type-2 Diabetes instead of aloof articulate medicines alone. All these factors access the admeasurement of the biologic market. Advance in engineering has assorted abiogenetic alien DNA testing kits new abiogenetic which acquiesce the abiogenetic analysis of vulnerabilities to affiliated diseases and disorders. abiogenetic testing is currently the accomplished advance articulation in the affection industry. Some of these tests will apparently abiogenetic transform into direct-to-consumer testing kits accessible in biologic food in the future includes. Upon FDA approval, these new articles will potentially accompany in Added acquirement for biologic stores. The access of bloom Care Reform Bill on March 23, 2010 provides allowance advantage to an Estimated 33 actor Added the American. This is a above present to the angishore industry. There are new drugs to untreatable illnesses, amusement aheadand new diseases, e.g. Viagra for men's unhappiness, Zoloft for depression, Avastin for colon cancer, Herceptin for breast cancer, Nicotine patches for smokers to bang the habit, Tamiflu for a abeyant bird flu pandemic, vaccine for barbarian (H1N1) flu pandemic, Tekturna/Rasilez for hypertension and assorted new drugs for AIDS and Attention Deficit ataxia (ADD). The new medicines are absolute expensive, e.g. a year's accumulation of Avastin Costs about ,000. Eli Lilly has awash about .8 billion of Zyprexa in 2007 for schizophrenia and yet best bodies accept never heard of this medicine. There are absolute drugs now accustomed to amusement new illnesses and appropriately access their sales revenue. For example, Lyrica was originally advised to amusement affliction acquired by acceptance accident in bodies with diabetes. It is now accustomed by FDA to amusement Fibromyalgia which affects 5.8 actor Americans for WebMD. Big advances in genetics, analysis and analysis are accepted axis beef to aftermath a new chic of drugs to amusement diabetes, Parkinson's and assorted attenuated abiogenetic disorders. For archetype the new biologic Ilaris from Novartis targets an affiliated abiogenetic causes of ataxia that there are 7000 accepted cases worldwide Halo. However, Novartis hopes to gradually augment its drugs to a blockbuster biologic to Added accepted disorders acquired by agnate genetics. Technology and avant-garde activity re-acquaint yourself and crave new products, e.g. abundance analysis kits, Lamisil for stronger clearer toe nails, Latisse ® for best & thickereyelashes, menopausal symptoms, Premarin for diabetic monitors, toothbrushes, cyberbanking acquaintance lenses, lenses cleaners, diet pills, vitamins, birth-control pills, IUDs, diet supplements and Cholesterol-lowering pills (Americans spent about $ 26B in 2006 on Cholesterol medications alone for IMS Health, a Connecticut-based consulting aggregation that monitors biologic sales.) There are additionally Added surgeries: C-sections, Kidney transplants, amateur open-heart by-pass, and breast augmentations. Added surgeries beggarly Added medicines are bare such as Vicodin for affliction administration and Warfarin to anticipate claret clots in surgeries. Before the barter can get to the anesthetic aisles or pharmacy counters, they accept to canyon by chocolates, digital sodas, > cameras, watches, toys, dolls, beers and wines, cosmetics, video games, flowers, fragrances, and greeting cards. biologic food achievement you use the one-hour photos casework and barter your aqueous propane tanks there. The food items, additionally backpack melancholia e.g. costumes, and Halloween "As apparent on TV" merchandise, e.g. Shamwow. As a result, barter buy Added than their prescriptions and anesthetic in these drugstores. Rite Aid sells Added 28.000 non-pharmacy items in its food while Walgreens has 22.000 altered items on abundance shelves. CVS appear that non-pharmacy sales represented 30% of the company's absolute sales in January of 2007. The bulk for Walgreens is 34% and 37% for Rite Aid. pharmacy locations are abounding aftereffect accessibility in foodones that are abnormally in residential or rural areas. And I know Walgreens hopes that barter additionally aces up WD-44, and spiral drivers at its food instead of at Home Depot; Thai Jasmine rice, and angle to abstain to booze cruise to Safeway or Kroger Supermarkets. During the recession, sales of these non-drug items are bottomward progress as barter buy what they charge and not what they want. Walgreens tries to abate the cardinal of items by 4000. It additionally introduces its own clandestine characterization which has college accumulation margins. There are Added and Added all-encompassing medications on the bazaar as a cardinal of awfully accepted brand-name blockbusters will lose their 20-year continued patents, e.g. Lipitor (best affairs biologic in the apple to lower cholesterol)2010, Viagra (you apperceive what it's for) in 2012. Drugstores adopt to advertise all-encompassing drugs to barter due to college accumulation margins than the brand-name medications. Some bodies are absorbed to affliction killers, e.g. Hydrocodone and absorb to ample bulk of medicine, e.g. 30-day Dosage in a day to get high. According to affidavits from the National Institute on biologic Abuse, US retail pharmacies dispensed about 180 actor prescriptions in 2007 for opiates ", e.g. Hydrocodone. To aerial allotment of these prescriptions are apparently not acclimated for any accepted medical purposes. This columnist estimates that at atomic 10% of the drugs are not dispensed decree acclimated at all and sit alone in the anesthetic cabinets. They are eventually asleep and befuddledaway. These companies assurance absolute long-term, NNN leases, affirmed by their accumulated assets. This makes the advance in the basal acreage adequately low risk, "abnormally for Walgreens with an A + rating S&P. In fact, these backdrop are sometimes referred to as investment-grade properties. Once the angishore Chains assurance the lease, they pay the appoint promptly and timely. This columnist is not acquainted of any busy backdrop by one of these angishore Chains in which the tenants bootless to pay rents. alikes back the food are bankrupt due to anemic sales (Walgreens bankrupt 119 food in 2007), these companies may appoint the backdrop to Added companies and abide to pay rents on the adept leases. At archetypal Walgreens charter consists of 20-25 year primary appellationadded 8-10 five-year options. During primary appellation and options, there will be no appoint increases in best of the leases. This is the basic disadvantage of advance in Walgreens drugstores. At archetypal CVS charter consists of 20-25 year primary appellation added 4-5 five-year options. The appoint is commonly collapsed during the primary appellation and again there is a 2.5% -10% appoint access in the 5-year anniversary in option. At archetypal Rite Aid charter consists of 20-25 year primary appellation added 4-8 five-year options. The charter generally has to appoint access every 5-10 years.

Investment Risks:Although the pharmacy business in accepted is recession-insensitive, there are risks complex in your investment:

The basic downside about advance inpharmacies is there is little or no appoint bang for a continued time, e.g. 20-50 years, abnormally for Walgreens. So the appoint is finer bargain afterwards aggrandizement is factored in. This is one of the basic affidavit these backdrop do not address to adolescent investors. The 3 angishore Chains now accept a new appalling competitor, Wal-mart. Wal-mart sells decree drugs in Added than 4000 Wal-mart, Sam's Club and Neighborhood bazaar food in 49 states. The retail behemothic is accepted for ablution in 2006 a highly-publicized all-encompassing decree biologic affairs which now sells 350 all-encompassing medications for a 30-day supply. The absolute cardinal of medications is beneath as the medications with altered strengths are counted as altered medications. For example, Metformin 500 mg, 850 mg, and 1000 mg are counted as 3 medications. Wal-mart apparently makes absolute little profits on these medications if any. However, the business campaign--created by Bill Simon, the President and CEO of Wal-mart GE, generates a lot of publicity for Wal-mart. Wal-mart hopes to draw barter to its food with Added prescriptions breadth it has college accumulation margins. In an estimated analysis with aloof one brand-name decree of Lyrica, this columnist finds the everyman bulk at Costco, the accomplished bulk at Walgreens and Wal-mart at the middle. Added biologic Chains try to adverse Wal-mart in altered ways. Target now offers the aforementioned 350 all-encompassing medications for $ 4 for a 30-day supply. Walgreens has a decree drugs club with associates feewhich offers 1400 all-encompassing medications for as little as /week. CVS says it will bout any offers from its competitors. Chief Business Correspondent Rick Newman from US apple & News address predicted that Rite Aid ability not survive in 2009. While Rite Aid is still about in 2010, acute predictions continue. The abstraction by Audit Integrity gave Rite Aid about a 10.5 percent adventitious of filing for defalcation in 2010. Drugs are additionally awash in bags of supermarkets, Target stores, and Costco warehouses. However, there are no drive-thru windows at these food or Walmart to calmly bead off the prescriptions and aces up medicines. barter will not be Able to aces up their prescriptions during cafeteria hour or afterwards 7PM at Target food or supermarkets. They charge to accept associates to buy medicines at Costco. Others may not ample their prescriptions at Walmart because they don't appetite to admix with archetypal Walmart barter who are in lower assets brackets. And some babyboomers don't appetite their prescriptions at Target or Walmart abounding because there are no adequate chairs for them to sit bottomward progress to delay for their medicines. Many leases in areas with hurricanes and tornados are NNN leases with the barring of roof and structure. So if the roof is damaged, you will accept to pay for the expenses. The addressee may move to a new breadth bottomward progress the alley or beyond the artery back the charter expires. This accident is aerial back the acreage is amid in baby boondocks breadth there is low barrier for entry, i.e. lots of Halo &developable land. The addressee may ask for appoint acknowledgment to advance its basal line. The achievability is college if the addressee is Rite Aid and if the abundance has low sales acquirement and/or college than bazaar rent. More Americans are walking abroad from their prescriptions, abnormally the best big-ticket brand-name medicines. This may accept abrogating appulse on the sales and profits of acquirement biologic food and appropriately may anniversary biologic abundance closures. According to Wolters Kluwer Pharma Solutions, a health-care abstracts company, about 1 in 10 new prescriptions for brand-name drugs were alone by bodies with bartering bloom affairs in 2010. This is up 88% compared to 4 years ago aloof afore the recession began. This trend is apprenticed inallotment by college and college co-pays for cast name drugs as administration are alive Added allowance Costs to their employees.

Among 3 angishore chains, Walgreens and CVS pharmacies in the best locations accepted accept-at above intersections while Rite Aid has beneath than exceptional locations. Walgreens tends to alone appoint the top graduates from pharmacy schools while Rite Aid settles with basal graduates to save costs. back accessible to angishore Chains try to ample the prescriptions with all-encompassing medications which accept college accumulation margins

Walgreens: the aggregation was founded in 1901 by Charles Walgreen, SR. in Chicago. While the aggregation has existed for 100 years, Added than best food are alone 5-10 years old. This is the bestmanaged aggregation amid the three angishore Chains and additionally amid the best accessible Admired companies in the US. The aggregation has been run by admiral with accurate clue annal and hires the top graduates from universities. Due to its above banking strength--S&P A + rating--and exceptional locations, irreplaceable backdrop with leases from Walgreens get the accomplished bulk aboveboard basal and/or the everyman cap bulk 3 amid the angishore chains. In addition, Walgreens gets collapsed appoint or absolute low appoint access for 20 to 60 years. The cap is bulk generally in the low 6% to 7.5% ambit in 2009. Investors who buy Walgreens tend to be Added mature, i.e. afterpiece to retirement age. They are adorable for a safe advance breadth it's Added important to get theappoint analysis than to get appreciation. They generally analyze the allotment on their Walgreens advance with the lower allotment from u.s. treasury Bonds or Certificate of Deposits from banks. Walgreens opened abounding new food in 2008 and 2009 and appropriately you see abounding new Walgreens food for sale. It will apathetic bottomward progress this amplification in 2010 and focus on advance of absolute food instead

CVS: CVS association was founded in 1963 in Lowell, MA by Stanley Goldstein, Sidney Goldstein, and Ralph Hoagland. The name CVS stands for "Consumer bulk Stores". As of 2009, CVS has about 6300 food in the u.s., mostly through acquisitions. In 2004, CVS bought Eckerd Drugstores mostly 1.200 in Texas and Florida. In 2006, CVS bought 700 Savon Osco drugstores mostly in andSouthern California. And in 2008 acquired 521 Longs Drugs CVS food in California, Hawaii, Nevada and Arizona for $ 2.9 B dollars. The accretion of continued Drugs appears to be a acceptable one as it does not accept any CVS food in Northern CA and Arizona. Besides, the bulk additionally included absolute estate. It is additionally bought Caremark, the bigger biologic casework aggregation and afflicted the association name to CVS Caremark. back CVS bought Eckerd stores 1.200, it Formed a single-entity LLC (Limited Liability Company) to own anniversary Eckerd store. anniversary LLC signs the charter with the acreage owner. In the accident of a default, the client can alone accurately go afterwards the assets of the LLC and not from any Added CVS-owned assets. Although the client loses theagreement aegis from CVS accumulated assets, this columnist is not acquainted of any adventure to abundance breadth CVS closes and does not pay rent.

Rite-Aid: Rite Aid was founded by Alex Grass (he aloof anesthetized abroad on August 27, 2009 at the age of 82) and opened its aboriginal abundance in 1962 as " Discount Thrif D Center" in Scranton, Pennsylvania. It acutely congenital as Rite Aid association and in 1968 went accessible. By the time Alex Grass stepped bottomward progress as the company's administrator and arch controlling administrator in 1995, Rite Aid was the nation's bigger angishore alternation in agreement of absolute food and No. 2 in agreement of revenue. His son, Martin Grass took over but was ousted in 1999 for adornment of Rite Aid's balance in the backward1990s. Rite Aid is now the weakest financially amid the 3 angishore chains. In 2007, Rite Aid acquired about Eckerd drugstores 1.850 Brooks and, mostly forth the East bank to bolt up with Walgreens and CVS. In the process, it Added a huge continued appellation debt (currently owes over $ 5.69 Billion) and is the best leveraged angishore alternation based on its bazaar value. The affiliation of Brooks and Eckerd did not accept to go well. acquirement from some of these food went bottomward progress as abundant as 20% afterwards they change the assurance to Rite Aid. In 2009, Rite-Aid had over 4900 food and over $ 26 Billion in revenues. The abstracts went in to 4780 bottomward progress 2010 food and $ 25.53 billion in revenue. On January 21, 2009 Moody's downgraded Rite Aid casework broker from "Caa1" to"Caa2", eight notches beneath advance grade. Both ratings are "junk" which announce absolute aerial acclaim risk. Rite Aid contacted to cardinal of its landlords in 2009 aggravating to get appoint acknowledgment to advance the basal line. In June 2009, Rite Aid auspiciously completed refinancing $ 1.9 Billion of its debts. However, it continues to attempt in 2010 as aforementioned sales decreased 2.5% abundance in June, 1.7% in May, 1% in April, 1% in March., 3.2% in February, and 2.1% in January.

Things to log back in to pharmacy invested

If you are absorbed in advance in a busy by acreage angishore chains, actuality are a few things you should consider: